FRANKFURT (dpa-AFX) – Increased annual targets have given Wacker Neuson (Wacker Neuson SE) a price jump on Thursday. According to preliminary figures, the construction machinery manufacturer also significantly increased its sales and, in particular, its operating result (EBIT) in the first half of the year.
In response to the outlook increase, the shares rose to EUR 23.80 and were therefore as expensive as they were last in January 2022. Most recently they claimed an increase of 6.2 percent to EUR 23.25. The shares not only made it above the 21-day average line, which chart technicians consider important for the short-term trend, but also conquered one of the top places in the SDAX small-cap index. Since the beginning of the year, the price has risen by almost 43 percent, which also makes Wacker Neuson one of the biggest winners in the small and mid-cap index for this period.
In a first assessment, Jefferies analyst Martin Comtesse spoke of strong quarterly figures, which would have triggered the expected increase in annual targets. The midpoints of the new target ranges are above his and consensus estimates and include second-half revenue growth of 5% with a 15% operating EBIT decline, which he now considers conservative.
According to the expert, the new goals suggest that the peak in order development is behind the company and that growth rates will return to normal in the short term. However, he sticks to his buy recommendation for the shares with a target price of EUR 26. This recommendation means that, according to the Jefferies analysts, the paper should achieve a total return (price gain + dividend) of at least 15 percent over a twelve-month period./gl/la/he
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